Sundaram Finance Holdings Ltd. (SFHL), an associate company of Sundaram Finance Ltd. has decided to increase its stake in Chennai-based Flometallic India Pvt. Ltd. (FIPL) by 6.84% by acquiring 650 equity shares from individual shareholders for a cash consideration of ₹13 crore.
With this, SFHL’s stake in FIPL will increase to 46.84% from 40%. The shares of ₹1 lakh each are to be purchased from 14 individual shareholders for a total consideration of ₹13 crore, excluding stamp duty, applicable taxes and other expenses. The transaction is likely to be completed by June end, SFHL said in a regulatory filing.
FIPL is engaged in the manufacture of iron castings for the automotjve industry. It reported a turnover of ₹304 crore for FY20 with a net profit of ₹10 crore.
The board of SFHL met today and approved the acquisition. It is a related party transaction and is being done at arm’s length, with the prior approval of the Audit Committee.
Incorporated during October 1993, SFHL primary business is to make investments of all types and engage in business processing and support services, including training services.